Is A Self Storage Management Company Right For You?


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Is A Self Storage Management Company Right For You?

  1. 1. Not all Management Companies Are The Same <ul><li>What do they provide…What is their job! </li></ul><ul><li>Are their reports delivered timely…digital? </li></ul><ul><li>Are they current on the technology available to make your property successful? </li></ul><ul><li>How much involvement can you have? </li></ul><ul><li>Is there a way out of the agreement if unsatisfied? </li></ul><ul><li>HOW DO YOU KNOW THEY ARE DOING THEIR JOB? </li></ul><ul><li>ULTIMATELY WILL A MANAGEMENT COMPANY IMPROVE YOUR BOTTOM LINE! </li></ul>
  2. 2. What Should They Provide? <ul><li>Their job should be total ASSET MANAGEMENT. The following 5 topics are just a sample of some of the services any capable Management Company should do for you. </li></ul>
  3. 3. 1-Manager Support & Training
  4. 4. What To Train <ul><li>Company Policy and Procedures: Complete with Job Description </li></ul><ul><li>Liability Review: Not only items such as Lease Agreement and Auctions but also Physical liability </li></ul><ul><li>Software: All aspects! </li></ul><ul><li>Internet Training </li></ul>
  5. 5. What To Train <ul><li>Understanding the Lease Agreement. </li></ul><ul><li>Phone Sales: personalize every call and schedule a visit </li></ul><ul><li>Close sale when showing unit </li></ul><ul><li>Locks on golf cart! </li></ul><ul><li>Office Sales </li></ul><ul><li>Collecting Delinquencies </li></ul>
  6. 6. Customer Service Most Important
  7. 7. Services To Offer <ul><li>PO Box area, Conference room. </li></ul><ul><li>Wireless internet. </li></ul><ul><li>Coffee, Hot Chocolate, Water , Pizza. </li></ul><ul><li>Accept deliveries. </li></ul><ul><li>Garage sales. </li></ul><ul><li>Select a local charity. </li></ul><ul><li>DO THEY PROVIDE ON GOING TRAINING? </li></ul>
  8. 8. Follow Up <ul><li>Implementation without Follow Up is worthless. </li></ul><ul><li>Never leave a project to chance. After Training and Implementation make sure your Regional Managers and Facility Managers are comfortable with the new items. If not, consider additional training. </li></ul><ul><li>Is the project having a positive effect on NOI. </li></ul>
  9. 9. 2-Curb Appeal <ul><li>Equipment Maintenance: access gates, security system, elevators, golf cart… </li></ul><ul><li>Office Area: first impression when entering office? (site, touch and smell) </li></ul><ul><li>Temperature Controlled units: connected to office? </li></ul>
  10. 10. Curb Appeal <ul><li>Appearance from drive by: lawn area (crisp and clean), extermination, roof area (A/C units), snow removal, unit doors, outside walls… </li></ul><ul><li>Unit Maintenance: hasps, weather stripping, interior walls, doors especially back of door! </li></ul><ul><li>Site Maintenance: fencing, irrigation system, public restrooms, thermostats, common areas… </li></ul>
  11. 11. 3-PRESENTING YOUR PRODUCTS Stand Out !
  12. 12. Marketing
  13. 13. Compare Yourself To Competition <ul><li>The latest statistics show there are an average of 7 competitors within a 5-miles radius. </li></ul><ul><li>What does their office look like? Spacious, clean… </li></ul><ul><li>What does their merchandise area look like? </li></ul><ul><li>What are their pricing and specials? </li></ul><ul><li>What are the managers like? Knowledgable, professional… </li></ul><ul><li>What is their CLASS (A,B or C)? Any competitor that is less than a Class C do NOT include as competition. </li></ul>
  14. 14. Class Types of Properties <ul><li>Class A Properties: Properties featuring above-average design and construction quality. Offer a Retail Area and have a Security System along with Computerized Access. Typically have an On-Site Manager. Command the higher rental rates and have a superior location in terms of desirability or accessibility. </li></ul><ul><li>Class B Properties: Properties with adequate design and construction quality. Have Computerized Access along with an On-Site Manager. These typically command average rental rates and are generally well-maintained and desirable to most tenants. </li></ul><ul><li>Class C Properties: Properties offer adequate functionality but few amenities. The physical condition is acceptable but may have some deferred maintenance. Command below-average rental rates and are in a less desirable location. </li></ul>
  15. 15. What Marketing To Do <ul><li>Yellow Pages: </li></ul><ul><li>Signage: on site (electronic, banners), in neighborhood (school buses, buss benches, billboards). </li></ul><ul><li>Print ads: direct mailers, fall outs, door hangers </li></ul><ul><li>Trucks on site: </li></ul><ul><li>Referral aids: tenants, apartments, realtors, neighborhood businesses, competitors… </li></ul><ul><li>INTERNET: web optimization, pay per clicks, secondary web site placement! </li></ul><ul><li>Strategic Alliance Program: </li></ul>
  16. 16. What Marketing To Do <ul><li>Online Radio Spots- Many people listen to online radio at work. Cheap sponsored video links are available via “listen live” button on radio station websites. </li></ul><ul><li>MUST MEASURE AND MONITOR ALL RESULTS! </li></ul>
  17. 17. Referral Programs <ul><li>A common program that works is a $25 credit for the referrer (current tenant) and a free month for the referral (new tenant). </li></ul><ul><li>Mail your current tenants once every 3 months with a referral letter and referral cards. </li></ul><ul><li>Give referral cards to all new move ins and keep a stack on your office counter. </li></ul>
  18. 18. Bus Bench Advertising
  19. 19. School Bus Advertising
  20. 20. Power of Viral Media <ul><li>Remember </li></ul><ul><li>A happy customer will tell 3 people about the experience at your store. An Angry Customer will tell 16…...16,000 (Youtube, Twitter, etc..) </li></ul><ul><li>* The Power of Viral Media: Angry Customers Armed with New Weapons : Teri Lanza: Inside Self </li></ul>
  21. 21. 4-Site Visits / Audits <ul><li>YOUR MANAGEMENT COMPANY SHOULD SUPPLY YOU WITH THE VISIT REPORTS AS PART OF THE MONTH END! </li></ul><ul><li>Monthly Site Visit Reports: </li></ul><ul><li>Review Marketing Implementation: </li></ul><ul><li>Competitor Reviews: </li></ul><ul><li>Managerial Meetings: </li></ul><ul><li>AUDITS: Both physical and financial! </li></ul>
  22. 22. Property Visit <ul><li>Units with no garbage & swept clean. </li></ul><ul><li>Clean golf cart for customer to ride on. </li></ul><ul><li>On cart have water and sealed locks. </li></ul><ul><li>Signs pointing out security. Cameras, Alarms. </li></ul><ul><li>Temperature control settings. </li></ul><ul><li>Does facility need painting? </li></ul><ul><li>How does office look? </li></ul><ul><li>Manager in uniform? </li></ul>
  23. 23. 5-Financial Management <ul><li>Do they provide Operating Budgets </li></ul><ul><li>Book Keeping: Both on site and at Management Companies main office. </li></ul><ul><li>Rate Management </li></ul><ul><li>Expense Management </li></ul><ul><li>Payroll </li></ul><ul><li>Facility Deposits </li></ul><ul><li>Balance Inventory and reconcile bank account every month </li></ul>
  24. 24. Stanford University Study <ul><li>17% of customers will choose the highest price for any service. </li></ul><ul><li>13% of customers will choose the lowest price for any service. </li></ul><ul><li>70% of customers choose a service based on something more than price!!!! </li></ul><ul><li>* Stanford University Study (Mini Storage Messenger, July 2009, Does it Pay to Discount?) </li></ul>
  25. 25. Revenue <ul><li>Raising rates is normal, expected and NEEDED! </li></ul><ul><li>For a facility to stay profitable we must increase rates to counter the increase of expenses. </li></ul><ul><li>If you are 100% occupied you are losing customers. </li></ul><ul><li>Operating Expenses increase every year…PAYROLL! </li></ul>
  26. 26. Making Increases Easier! <ul><li>Involve manager on what reasons why, how much to raise and authority to handle any customers who have a concern. </li></ul><ul><li>Get tenants on auto pay credit card! </li></ul><ul><li>If multi story higher floors less likely to move out. </li></ul>
  27. 27. When To Increase <ul><li>Any time any given size is over 95% occupied. (RENT PUSH) </li></ul><ul><li>Any time you add anything of value to the facility... </li></ul><ul><li>New Security Features. </li></ul><ul><li>Maintenance such as painting of building or doors, new asphalt… </li></ul><ul><li>Opening of new units or new competition. </li></ul><ul><li>During the extremely HOT or COLD months. </li></ul><ul><li>When competition does. </li></ul>
  28. 28. Why 2 Increases A Year <ul><li>According to the 2009 Self-Storage Almanac in 2008: </li></ul><ul><li>Average residential stay is 13.7 months a 11% gain from 2006. </li></ul><ul><li>Average commercial stay is 22.5 months a 8.3% gain from 2006. </li></ul><ul><li>Average Military stay is 11.8 months a 8.6% gain from 2006. </li></ul><ul><li>Even students average a 4.5 month stay in 2007. </li></ul><ul><li>If we increase 2 times a year when the average tenant receives the second increase and calls. We tell them because they are a GREAT tenant we will cut the second increase in half. The facility still achieves a 10% increase, the tenant loves us and may stay longer than the average because we worked with them. </li></ul>
  29. 29. . Example On Increase <ul><li>If we have 100 tenants paying $100 each and you raise 2 times at 7% at the end of a year the unit is $114. </li></ul><ul><li>Before increase 100 X $100 = $10,000. </li></ul><ul><li>If lose 10% because of increase collect 90 X $114 = $10,260. </li></ul><ul><li>This is an increase of $260 per month plus you now have 10 units to rent at $114 per month. </li></ul>
  30. 30. Cut Expenses
  31. 31. Expenses <ul><li>Reduce size of Yellow Pages. </li></ul><ul><li>Internet presence. (free sites pay per click) </li></ul><ul><li>Eliminate security deposit go to Admin. Fee. </li></ul><ul><li>Discount pre paid units. </li></ul><ul><li>Shop credit card processing companies. </li></ul><ul><li>Invoice by e-mail. </li></ul><ul><li>Up collection call. </li></ul>
  32. 32. Expenses <ul><li>Appeal Property Taxes. </li></ul><ul><li>If climate controlled resent thermostat settings. </li></ul><ul><li>Install energy efficient bulbs and ballasts. </li></ul><ul><li>Install motion sensors. </li></ul><ul><li>Possibility of solar panels. </li></ul><ul><li>Switching phone service provider. </li></ul><ul><li>Remove dumpsters. </li></ul>
  33. 33. Expenses <ul><li>Insurance </li></ul><ul><ul><li>Increase deductibles. </li></ul></ul><ul><ul><li>Membership through certain types of organizations. </li></ul></ul><ul><ul><li>Reduction when grouped with other sites. </li></ul></ul><ul><ul><li>SHOP THE POLICY. </li></ul></ul>
  34. 34. Payroll <ul><li>Approximately 81% have implemented a hiring freeze or staff reductions. </li></ul><ul><li>Reduce benefits…Medical Insurance, vacation and sick time. </li></ul><ul><li>Prohibit overtime. </li></ul><ul><li>Cross Train - sharing employees between multiple sites. </li></ul>
  35. 35. Payroll <ul><li>Cutting office hours. Example from 8 hours business days to 6 hour business days. </li></ul><ul><li>DO NOT make managers subcontractors. </li></ul>
  36. 36. 7711 South Main Street Midvale, Utah 84047 801.273.1267 801.208.0431 FAX 1-866-970-EDGE (3343)